The effects of income tax changes on the economy and the distribution of after-tax income depend in part on the population that does not file a tax return or that does file a return but owes little or no net income tax liability. These types of tax units featured prominently in the debate over...
Before enactment of the Tax Reform Act on 1986, the individual tax code included 25 marginal tax rates. No more than 10 percent of tax filers were in a single bracket and eight brackets included less than 1 percentage of filers. Read this article to learn more about the history of Income Tax...
A variety of recent studies have found that the United States faces a substantial fiscal gap -- that is, a sizable imbalance between projected federal outlays and receipts. A recent study by Boskin (2003) suggests these findings are overstated because they largely or entirely omit projected...
The testimony discusses current statistics on tax evasion, the argument for trying to stem it, and why IRS efforts so far have been disappointing. It then focuses on specific issues related to the earned income tax credit (EITC). The testimony concludes that, while deterring system-wide tax...
On June 13, 2003, the IRS requested public comments on a proposed EITC procedure. The goal of this new EITC procedure, known as precertification, is to reduce EITC error rates by individuals who are ineligible. Because a variety of questions have been raised about this procedure, and also...
We find that estate tax repeal would reduce charitable bequests by between 22 and 37 percent, or between $3.6 billion and $6 billion per year. Previous studies are consistent with this finding, and also imply that repeal would reduce giving during life by a similar magnitude in dollar terms. The...
In recent years, the largest budgetary decisions of Congress have been concentrated in two areas: tax cuts and expansions in health care, particularly Medicare. Given all the rhetoric that surfaced during the tax cut debate, it might be worthwhile to see how consistently these arguments have...
[ Brookings Institution] This brief argues that the time is ripe for an integrated credit that combines the Earned Income Tax Credit (EITC) and the CTC into an Earned Income Child Credit (EICC). The proposed EICC simplifies and standardizes the definition of qualifying children and those...
Events leading up to the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) highlighted the role of tax provisions that expire at a given date, which are commonly known as "sunsets." This article examines trends in the magnitude and nature of sunsets, and discusses...
[Newsday] The tax bill that President George W. Bush signed into law last week sped up most of the 2001 tax cuts' provisions that were supposed to phase in gradually. Left out, however, were provisions that would have helped low-income working familiesincluding the increase in the refund...
Nonfilers and Filers With Modest Tax Liabilities
The effects of income tax changes on the economy and the distribution of after-tax income depend in part on the population that does not file a tax return or that does file a return but owes little or no net income tax liability. These types of tax units featured prominently in the debate over...
Income Tax Brackets Since 1985
Before enactment of the Tax Reform Act on 1986, the individual tax code included 25 marginal tax rates. No more than 10 percent of tax filers were in a single bracket and eight brackets included less than 1 percentage of filers. Read this article to learn more about the history of Income Tax...
Reassessing the Fiscal Gap
A variety of recent studies have found that the United States faces a substantial fiscal gap -- that is, a sizable imbalance between projected federal outlays and receipts. A recent study by Boskin (2003) suggests these findings are overstated because they largely or entirely omit projected...
Tax Evasion, IRS Priorities, and EITC Precertification
The testimony discusses current statistics on tax evasion, the argument for trying to stem it, and why IRS efforts so far have been disappointing. It then focuses on specific issues related to the earned income tax credit (EITC). The testimony concludes that, while deterring system-wide tax...
Research Required for the EITC Precertification Procedure
On June 13, 2003, the IRS requested public comments on a proposed EITC procedure. The goal of this new EITC procedure, known as precertification, is to reduce EITC error rates by individuals who are ineligible. Because a variety of questions have been raised about this procedure, and also...
Effects of Estate Tax Reform on Charitable Giving
We find that estate tax repeal would reduce charitable bequests by between 22 and 37 percent, or between $3.6 billion and $6 billion per year. Previous studies are consistent with this finding, and also imply that repeal would reduce giving during life by a similar magnitude in dollar terms. The...
From Taxes to Health Care
In recent years, the largest budgetary decisions of Congress have been concentrated in two areas: tax cuts and expansions in health care, particularly Medicare. Given all the rhetoric that surfaced during the tax cut debate, it might be worthwhile to see how consistently these arguments have...
Tax Reform for Families
[ Brookings Institution] This brief argues that the time is ripe for an integrated credit that combines the Earned Income Tax Credit (EITC) and the CTC into an Earned Income Child Credit (EICC). The proposed EICC simplifies and standardizes the definition of qualifying children and those...
Sunsets in the Tax Code
Events leading up to the enactment of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) highlighted the role of tax provisions that expire at a given date, which are commonly known as "sunsets." This article examines trends in the magnitude and nature of sunsets, and discusses...
Give the 'Lucky Duckies' a Helping Hand, Too
[Newsday] The tax bill that President George W. Bush signed into law last week sped up most of the 2001 tax cuts' provisions that were supposed to phase in gradually. Left out, however, were provisions that would have helped low-income working familiesincluding the increase in the refund...